sales promotion ideas by abe22

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									                                                Project 1: IMC

MKTG 313 001, Spring 2005, Prof. Kinsley

Use the information provided for Gino‟s Pizza and the information you submitted for Assignment 2 to
complete this project.

Submit a hard copy, stapled, with a cover page that contains your names and “Project 1” IMC. Do not use
a folder. Your document should follow the outline provided below.

Project Grading. Maximum point value: 50 points. Maximum point value per component:

Direct Mail: 20 points                                     Background & Written Communication: 5 points
- Type & Postage, Lists, Test, Rationale                   - Please note that this is your recommendation to
                                                           Gino, it is not your restaurant.
Sales Promotion: 10 points                                 Product and Pricing: 5 points
 - Appropriateness, Creativeness, Ability to measure
Direct Mail success, Cost Efficiency, Terms
Public Relations: 10 points
 - Fit with target market and restaurant, Ability to
generate PR buzz, Cost Efficiency

Points will be awarded based on:
 (a) how well your strategies fit the restaurant, target market, and location.
 (b) the cohesiveness of your strategies – how well they fit together as a plan.
 (c) the creativity and cost-efficiency of your strategies (remember, cost-efficiency does not mean least cost, it
     means spending a little more to get a lot more (it also does not mean spending a lot more though, since Gino
     does not want to spend a lot of money).
 (d) the completeness of the information (are the recommendations supported with strong rational? Is the mailing
     list information thorough? Are the cost components included for each area or just a final figure for each area?
     Is the background information provided?)
 (e)   how thought-out your plan appears.
 (f)   your recommendation for a direct mail test.
 (g)   the correctness of your budget estimates.
 (h)   the quality of the document (How easy is it to read? How well is it written? Does it follow the
       prescribed format?)
The same grade will be given to both members of the team, unless your Project and the task/feedback
page indicate otherwise.
Project Outline and Details

I. Background. Provide a paragraph or two to describe the client, target market, and location.

I. Product and Pricing. Based on the information you learned through Assignment 2 and your
recommendation for the target market and location, provide one-to-two paragraphs describing your
recommendations to Gino regarding how he should design his Product (the restaurant itself (you can
address décor, music, signage, etc.)) and set his Pricing (i.e., menu pricing – description, not item listing).

II. Integrated Marketing Communications Campaign. Gino would like for you to design an IMC campaign
for him comprising Direct Mail, Sales Promotion, and Public Relations (although the staff has a Personal
Selling component and Gino will be needing marketing collateral such as a business card and menu, these IMC
components are outside the scope of this project).

Important: His objective for the campaign is to make the target market aware of his restaurant and
interested in trying it. He does not have a lot of money for marketing, so all recommendations should be as
cost-efficient as possible (i.e., the most bang for the buck). Your campaign recommendations should be
consistent with one another and your recommendations above.

As the last step of your campaign recommendation you will specify the budget. As you address each IMC
component, keep the financial component in mind. See me if you have another strategy and need
assistance with cost data. You are welcome to find cost data on your own. Keep in mind, all labor must
have a cost associated with it (i.e., do not assume Gino will go to places to hand out materials himself.)

1. Direct Mail (please note, by Direct Mail I mean that it will be personally addressed and arrive by mail)

         Brainstorm on what you believe to be the most effective strategies.

         Use the site to assist you with generation of a list of households and pricing for different
         direct mail options (list options, postage options, format options, etc.) I suggest you first determine the test
         you plan to conduct (see 1B). Then determine the number of households for your list(s). Be sure to record
         all of the data you entered to generate the list – you will need it to complete this section. Then go the site‟s
         Pricing Calculator to evaluate the price of different direct mail options (on the site, go to Print and Mail on
         Demand, then click on Pricing Calculator. The default is a quantity of 100. Be sure to change the quantity
         so the proper volume discount is factored into the equation).

         Then, answer the questions below (use complete sentences – i.e., You may use “We recommend…”. You
         may not use “„No, because…”):

         A. Do you suggest a “test” be built into the DM campaign? I If not, why not? If so: (i) why? (ii)
         what should the test be? and (iii) How will you know which performed better?
         B. To how many households will you be mailing Direct Mail and how much will this cost?
               (i) Identify the information you entered to generate the list.
               (ii) Based on this information, how many households are on the list?
               (iii) Will you be mailing to all households on the list or just some of the list? Why?
               (iv) What are the specifics for your mailing? Identify postage, format details, etc. and your
               (v) List the cost to print each piece, the postage per piece, and the total cost for the Direct
                     Mail campaign. If there is more than one mailing, provide the above for the other
                     planned mailings as well.
2. Sales Promotion: Gino is willing to provide some incentive to interest people in trying the restaurant and
to be able to track the success of the Direct Mail campaign.

    Brainstorm on what you believe to be the most effective strategies. Consider your objectives, target market,
    restaurant profile (i.e., product/pricing/image) and cost of your sales promotion ideas. Cost will really be “cost”
    or “revenue reduction”.
    If your sales promotion is „per use”, then assume a 3% response rate for the direct mail. Example: If sales
    promotion is buy one entrée, get second entrée free (don‟t use this idea), then estimate the average entrée price
    and multiply this by your 3% response rate to determine the total revenue reduction.
    To estimate the price, look at peer restaurants (i.e., very expensive – see Bellisimo, if expensive – see Il Lupo; if
    mid-tier upscale casual see Arties or Le Tire Bouchon; if mid-tier casual see Dolce Vita; if casual – see Espositos
    or Mama Luccia).
    Then answer the following:
    A. What is your recommendation for the sales promotion?
       (i) Why?
       (ii) What other promotions did you consider and why do you feel your recommendation is better?
    B. What are the terms of the sales promotion (i.e., what “small print” should be included in the Direct
    C. What will your Sales Promotion recommendation cost Gino (or what will be the cost or revenue
       reduction?) Specify exactly how you determined the total cost or total revenue reduction.

3. Public Relations (PR):
    Brainstorm on what you believe to be the most effective PR strategies (think of 2 or 3). Then email me to get
    pricing information for your strategies. After you‟ve selected a plan, answer the questions below:

        A. What is your recommendation for public relations?
           (i) Why?
           (ii) What other PR strategies did you consider and why do you feel your recommendation is
        B. When should your recommendations be executed?
        C. What will your PR recommendation cost Gino (or what will be the lost revenue?)

4. What is the budget for your IMC Campaign? (copy your final figures from above and sum them)

5. Complete the IMC Project 1 Task/Feedback document (see Course Outline for the document).

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